Cross border insolvencies and financial restructurings are remarkably opaque considering we live in the Information Age. The mission of the Centre of Main Interest (the COMI) is to light some candles in the darkness and create a forum for further discussion. The Law Offices of Tally M. Wiener, Esq. are pleased to publish the COMI blog.
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Saturday, September 12, 2015

U.N. Nations Approve Principles For Sovereign Debt Restructuring

Per www.globalinsolvency.com:

Fri., September 11, 2015

The
United Nations General Assembly on Thursday approved what it described
as global "basic principles" for sovereign debt restructuring processes
to improve the global financial system, an initiative that was inspired
by Argentina's debt crisis, Reuters reported. There were 136 votes in
favour, six against and 41 abstentions in the vote on the resolution,
which was submitted to the 193-nation General Assembly by South Africa.
Unlike the Security Council, which has the power to issue legally
binding resolutions, General Assembly resolutions are non-binding. But
they carry political weight. The resolution urges debtors and creditors
"to act in good faith and with a cooperative spirit to reach a
consensual rearrangement" of sovereign debt. "A sovereign state has the
right ... to design its macroeconomic policy, including restructuring
its sovereign debt, which should not be frustrated or impeded by any
abusive measures," it added. The vote came one year and a day after the
General Assembly agreed to negotiate and adopt a multilateral legal
framework for sovereign debt restructuring processes. It added that
states should be immune from domestic court decisions related to
sovereign debt restructuring, adding that any exceptions should be
limited.